Duke Energy spending more to lobby

Leaving their mark on a major energy bill, North Carolina's giant power companies are on track to spend more on lobbying state legislators this year than in previous legislative sessions.

Duke Energy and Progress Energy were behind provisions inserted into an environmental bill promoting renewable energy that would make it easier to finance multibillion-dollar power plants and shift more financial risk from shareholders to customers, who could end up covering costs from failed power plant projects.

Six months into the current two-year legislative term, Charlotte-based Duke and Raleigh's Progress Energy together have spent more than $176,000 on lobbying legislators. That's more than three-quarters of the $235,000 they spent during the entire previous term.

Of that, the bulk has been spent by Duke Energy. Progress has spent $39,905 so far, compared with $85,000 for the previous term.

Consumer and political watchdog groups say utilities have too much influence over the legislative process. They also point out that significant political contributions from utility political action committees are standard in Raleigh.

"They are spreading their money out as an investment and building friendships, particularly with state senators. And it's been going on for years," said Bob Hall, research director of Democracy North Carolina, a nonprofit state politics watchdog in Chapel Hill. "They've accumulated a lot of good will, and they are also viewed as the experts."

Corporations and special interest groups hire lobbyists to talk to legislators and influence the outcome of legislation. Environmental groups and other nonprofits also lobby. The agents and their clients, including Duke and Progress, must register with the state and list their lobbying expenditures.

Other than the state budget, the environmental bill has been the major piece of legislation debated this year. Earlier this month, the Senate passed the bill, which is now being debated in the House.

Duke said Friday that it doesn't have any undue influence in the General Assembly. It's merely participating in the democratic and political process by lobbying lawmakers and giving contributions, spokesman Tim Pettit said.

"It costs a lot for them to run for office," he said. "Any of our lobbying efforts are looking out for the interest of our shareholders and customers. That goes without saying."

But critics say shareholder and customer interests are not always aligned and that the legislation on renewable energy is a prime example of how the bottom line is being served ahead of customers.

Introduced in January, the bill began as a straightforward proposal to require the state's power companies to produce 10 percent of electricity from renewable energy sources, such as from the wind, sun and animal waste.

After a meeting in Raleigh among lawmakers, environmentalists, utility lobbyists and others, the bill was changed. Support has turned tepid among some environmentalists who complained that the legislation was co-opted by utility interests.